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Grade 9 Economic and Management Science (EMS) Part 1 [Management] Summary $6.37
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Grade 9 Economic and Management Science (EMS) Part 1 [Management] Summary

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A complete summary of the content of Economic and Management Science Grade 9 regarding management [business studies which is regarded part 1], which complies with the requirements as laid out in the CAPS curriculum. Colorful side notes have been added to enhance the learning experience

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  • June 19, 2022
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EMS

, CHAPTER 1: ECONOMIC SYSTEMS
WHAT IS AN ECONOMIC SYSTEM?

-the system used by the government of a country to solve the country's economic
problem



WHAT IS THE ECONOMIC PROBLEM?

-People have unlimited needs and desires but limited resources to satisfy these
desires and needs.



A COUNTRY'S ECONOMIC SYSTEM DETERMINES THE FOLLOWING:

-how resources are allocated - PUBLIC AND PRIVATE BUSINESSES

-what goods and services are produced -WHO OWNS OWN PROPERTY

-how goods and services are produced. - WHO IS IN CONTROL OF COUNTRY
MARKETS ???


 CENTRALLY PLANNED ECONOMY

( GOVERNMENT CONTROL ECONOMY)
BUSINESSES → STATE
Characteristics of centrally planned economy:
STATE → GET PROFIT &
➢ Government controls the factors of production (STATE)
PROVIDE SERVICES
➢ Government decides which goods and services are produced

➢ Government decides how these goods and services are produced

➢ Government decides who the consumers of these goods and services will be.

Centrally planned economy's benefits in everyday life:
➢ Reduce inequality

➢ EmploymentqSTABLE ECONOMY

➢ Economic equality

➢ Resources are used for the mutual benefit of all

➢ Economically vulnerable people are protected.

2 © Noted Summaries Grade 9 EMS Part 1: Management Studies www.notedsummaries.co.za

,Disadvantages of a centrally planned economy::
➢ The government can not process all relevant information vining enough to
make economic decisions - ENTREPRENEURS ARE DISCOURAGED

➢ Absence of profit motive. - GOVERNMENT CONTROLS EVERYTHING

- RESOURCES ARE NOT SHARED EQUALLY

MARKET ECONOMY

(ECONOMIC DECISION MAKED BY INDIVIDUALS)

- an economic system in which economic decisions are made by private individuals
who own the factors of production

GOVERNMENT → NOT ACTIVELY INVOLVED
Characteristics of market economy: GOVERNMENT → GOODS AND SERVICES
➢ Private individuals own and control the factors of production

➢ Entrepreneurs decide what to produce

➢ Entrepreneurs decide how the production will take place

➢ Individuals decide which goods and services will be used.



Benefits of market economy:
=Supporters of the free market economy believe that a free market system can
lead to a good way of allocating resources in an efficient way and that it gives
private individuals a good motivation of profit motive and entrepreneurship is
encouraged - ENTREPRENEURSHIP IS ENCOURAGED AND
REWARDED

- CAN DETERMINE YOUR OWN STANDARD OF
Disadvantages of the market economy: LIVING
➢ Economic inequality - LITTLE INTERVENTION OF GOVERNMENT
➢ Self-interest - INDIVIDUALS HAVE FREEDOM OF CHOICE

➢ Exploitation

➢ Often public goods and services are not provided or are scarcely provided.
-BIG DIFFERENCE BETWEEN RICH AND POOR PEOPLE (INCOME)



3 © Noted Summaries Grade 9 EMS Part 1: Management Studies www.notedsummaries.co.za

, Mixed economy

mixture of private and state control over the economy.

Characteristics of the mixed economy:
➢ Capital from banks, stock exchanges and government [spend tax revenue]
➢ Entrepreneurs decide WHAT to produce
➢ Government spends money on public services
➢ Government implements legislation to control economic activity [e.g.
Affirmative action in SA]



Benefits of mixed economy:
➢ Combination of state and private enterprises gives good economic growth
➢ Government works to promote balanced growth of the economy [income equal
to market economy]
➢ Private businesses are encouraged to contribute to the well-being of citizens
➢ Competition is promoted [but also protects citizens]



Disadvantages of mixed economy:
➢ Limiting economic growth
➢ Major GOVERNMENT INVOLVEMENT in the economy [government
bureaucratic and susceptible to corruption]



GLOBALIZATION:

-the trend towards greater economic integration and cooperation between
different countries.

GLOBAL ECONOMY INCLUDE:

(ECONOMY OF THE WORLD) GLOBALIZATION OF PRODUCTION
MARKETS, FINANCE, COMMUNICATION
Characteristics of global economy:
AND THE LABOR FORCES
➢ Free trade in goods and services

➢ Free movement of labor

➢ Free movement of capital.

4 © Noted Summaries Grade 9 EMS Part 1: Management Studies www.notedsummaries.co.za

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